What is the difference between FOB and EXW?

EXW means you collect goods at the factory gate and handle everything from there. FOB means the supplier delivers goods on board the vessel and clears export, so you only pay freight and insurance from the port onward. FOB is easier for most importers.

Which Incoterm should I use when importing from China?

FOB (port of Ningbo) is the most common starting point for B2B buyers — the supplier handles export, and you control the main freight. CIF adds freight and insurance to the supplier. DDP is door-to-door, but the supplier then owns customs and duties.

What does DDP mean and should I use it?

DDP (Delivered Duty Paid) means the seller delivers to your door and covers duties and taxes. It is convenient but usually costs more and gives you less visibility into customs. It suits buyers without their own broker or freight forwarder.

Incoterms Explained: FOB, CIF, EXW & DDP for Pet Product Buyers

Key takeaways

EXW = you collect at the factory gate and handle everything.
FOB = the supplier loads on board and clears export; you pay freight + insurance from the port (the most common starting point).
CIF = supplier adds freight and insurance to the destination port.
DDP = door-to-door with duties included — convenient but pricier and less transparent.

The Four Terms at a Glance

Term	What the supplier handles	What you handle
EXW	Make goods available at factory	Everything from factory gate onward
FOB	Export clearance + load on board	Main freight + insurance + import
CIF	Freight + insurance to destination port	Unloading + customs + inland delivery
DDP	Delivery to your door, duties paid	Almost nothing (but higher price)

Which Should You Choose?

First order: FOB Ningbo — the supplier clears export, and you control the main freight with your own forwarder.
Want simplicity: CIF — one price including freight and insurance to your port.
No forwarder / broker: DDP — the supplier manages door-to-door, for qualified buyers.
Experienced importer: EXW gives the lowest unit price but the most logistics work.

We quote FOB Ningbo as standard, with CIF, EXW, and DDP available. See our shipping guide for lead times.

Sources & Further Reading

Incoterms are defined by the International Chamber of Commerce (ICC). For a deeper reference, see the official ICC Incoterms rules. See shipping walkthroughs on our YouTube channel.

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